Guide · Airline distribution

What is NDC (New Distribution Capability)? Airline offers, orders and NDC fares explained.

IATA's New Distribution Capability changed how airlines sell air tickets through travel agencies: the airline builds the offer, not a filed fare table. This guide covers what NDC is, how NDC fares differ from GDS fares, how the message flow works, and the practical issues of connecting to it.

Updated 9 min read By the Reservationhub team
Short answer

NDC (New Distribution Capability) is an IATA data standard that lets airlines send their own offers, including fares, fare bundles, seats and bags, to travel agencies and aggregators over XML APIs, instead of relying only on fares filed into GDSs. IATA adopted the foundation standard in October 2012, and it is open to any third party to implement.

Why did IATA create NDC?

Before NDC, most indirect airline sales ran through GDSs using EDIFACT messages and fares published in advance. That model struggles to show what airlines now sell: branded fare bundles, paid seats, baggage, Wi-Fi and personalised prices. On its own website the airline could show all of it; in an agency, much of it disappeared.

When IATA's Passenger Services Conference adopted the NDC foundation standard in October 2012, IATA noted that around 60% of tickets by value were sold indirectly through agencies using GDSs. NDC was designed so airlines could offer that indirect channel the same products and pricing control they have on their own sites.

How does NDC work? Offers and orders

NDC replaces "look up a filed fare, then build a booking" with offers the airline generates on request and orders the airline manages after purchase. A typical flow uses these messages:

StepNDC messageWhat happens
ShopAirShoppingThe airline returns priced offers for a route and date, often in several fare bundles.
PriceOfferPriceThe chosen offer is re-priced and confirmed before booking.
Add extrasServiceList, SeatAvailabilityBags, seats and other ancillaries are offered with airline prices.
BookOrderCreateThe airline creates the order and, with payment, issues the ticket.
ServiceOrderRetrieve, OrderReshop, OrderChange, OrderCancelView, change, refund or cancel the order after booking.

The shopping and pricing steps are where most integration work goes: offers expire, prices can move between shop and book, and each airline returns slightly different structures.

What are NDC fares?

NDC fares are airline fares delivered as offers through an airline's NDC API, instead of being looked up from a fare filed in advance. In the traditional model, airlines file fares with ATPCO and the GDS prices an itinerary from those filings. With NDC, the airline's own offer system builds the price on request, so it can include fare bundles, ancillaries and prices that never exist as filed fares.

Filed fare (GDS / ATPCO)NDC fare
Where the price comes fromFare published in advance and priced by the GDSOffer generated by the airline at shopping time
What is includedFare and fare rules; seats and bags often sold separately or not at allBranded bundles, seats, bags and other extras priced together
Price validityValid while the fare and seat class are availableOffer expires after a set time and is re-priced with OfferPrice
After bookingPNR in the GDS, changes priced against fare rulesOrder held by the airline, changed with OrderReshop and OrderChange

Are NDC fares cheaper? Not automatically. Some airlines keep certain fares or bundles NDC-only, and several airline groups add a surcharge to tickets booked through legacy non-NDC GDS channels, so the NDC price can be lower for the same flight. The reliable way to know is to shop the same itinerary across channels.

NDC versions and why they matter

IATA publishes NDC schemas in numbered releases, and airlines do not all run the same one. Versions such as 17.2, 18.1 and 21.3 are all common in production. In practice that means:

  • Each airline connection needs its own mapping, even though they are all "NDC".
  • Authentication, payment and ticketing rules differ per airline.
  • Servicing (changes and refunds) is where implementations differ most, so test it before you go live, not just shopping and booking.

How can a travel agency access NDC content?

RouteGood forTrade-off
Direct airline NDCHigh-volume agencies focused on a few carriersOne integration and commercial agreement per airline
NDC aggregatorAgencies wanting many NDC airlines through one APIYou depend on the aggregator's airline coverage
GDS NDCAgencies already on Amadeus, Sabre or TravelportCoverage and servicing depth vary by GDS and airline
Unified travel APIPlatforms that want NDC, GDS and low-cost content normalised togetherAn extra layer between you and the airline

Most agencies end up mixing routes: GDS for broad coverage, NDC for the airlines where it offers better content or pricing, and direct APIs for low-cost carriers. See how GDSs work for the other half of the picture, what an NDC aggregator does, and how Amadeus, Sabre and Travelport compare on NDC.

NDC on Reservationhub

Reservationhub connects to NDC content through GDS NDC on Amadeus, Sabre and Travelport and through NDC aggregators including Verteil, Travel NDC, Babylon NDC and Duffel, alongside direct airline connections. The full list is on our integrations page.

Travel agencies can sell NDC fares next to GDS and low-cost content in the Subscription Cloud Edition, enterprises can run the same engine on their own servers with the Source Code Edition, and platforms can reach the content through the TripGic travel API.

Frequently asked questions

What are NDC fares?

NDC fares are airline fares sold as offers through an airline's NDC API. The airline generates the price at shopping time, often as branded bundles with seats and bags, instead of the agency pricing a fare filed in advance through ATPCO and a GDS.

Are NDC fares cheaper than GDS fares?

Sometimes, but not always. Some airlines offer NDC-only fares or bundles, and some add surcharges to bookings made through legacy GDS channels, which can make NDC cheaper for the same flight. Compare the same itinerary across channels to be sure.

What is the difference between NDC fares and published fares?

Published fares are filed in advance through ATPCO and priced by a GDS from fare tables. NDC fares are built by the airline's own offer system at shopping time and can include bundles, ancillaries and dynamic prices that never exist as filed fares.

What does NDC stand for?

NDC stands for New Distribution Capability, an IATA programme and XML-based data standard for how airlines distribute offers and manage orders through travel agencies and other third parties.

Is NDC replacing GDS?

Not outright. NDC changes the format and control of airline content, but GDSs now carry NDC content as well. Most agencies use NDC alongside GDS and low-cost carrier connections.

Which airlines offer NDC?

Most large network carriers run NDC channels, including Lufthansa Group, British Airways, American Airlines, Emirates, Qatar Airways and Turkish Airlines. Coverage, version and servicing support vary by airline.

Can a small agency use NDC?

Yes. Small agencies usually access NDC through an aggregator, their GDS, or a booking platform that already integrates it, rather than connecting to each airline directly.

Is NDC only for flights?

NDC covers airline offers, including fares, bundles and ancillaries such as seats and bags. Hotels, cars and activities use their own supplier APIs.

Sell NDC fares without building each connection

Reservationhub brings NDC, GDS and low-cost content into one booking engine.

Book a meeting

Sources

  1. IATA — New Distribution Capability (NDC) programme
  2. IATA — IATA adopts foundation standard for New Distribution Capability (October 2012)
Chat on WhatsApp